Hedging

published on:2016-12-28 17:21:51Updated on:2016-12-28 17:19:45

1.  About Hedging: offering a function of price lock by hedge to buy and hedge to sell.

1)     Hedging in BitcoinWorld is a tool for users to lock price, through which user can quickly lock price during the trade in the case of loss caused by price fluctuation and thus ensure users’ earnings.

2). Hedging contain hedge to buy and hedge to sell. These two types cannot be used simultaneously

a.Hedge to buyusers borrow fiat currency through BitcoinWorld and it will buy bitcoin for users. Users’ accounts will get bitcoin and owe the platform fiat currency. BitcoinWorld will offer a professional system to you to buy BTC at a lowest price in all exchanges around the world.

b. Hedge to sell: users borrow BTC from the platform, and it helps user to sell bitcoin. Users’ accounts get fiat currency and owe the platform bitcoin. BitcoinWorld will offer a professional system to you to sell BTC at a highest price in all exchanges around the world.

3)BitcoinWorld only accepts bitcoin as the payment for interest.

2. Application for Hedging: user can quickly lock price during the trade in the case of loss caused by price fluctuation and thus ensure earnings.

1)     The maximum bitcoin amount that user can borrow depends on the net asset of user’ account and system stock.

2)     The maximum bitcoin amount that users can borrow is based on the fluctuation of current market price. The final maximum bitcoin borrowed amount is determined by the application limit of user’ current account indicated by system.

3)     The bitcoin amount that users apply for cannot be less than 0.1 BTC.

4)     Currently the system acquiesces the user’ leverage multiple is three. The leverage multiple is corresponding to different grades of user’s. If market price has a severe fluctuation, BitcoinWorld has right to adjust the leverage coefficient according to the current conditions and appropriately decrease or increase user’s maximum bitcoin borrowed amount

5)     During the process of buying or selling, if bitcoin price appears fluctuation, causing price differences between the original repayments or after-sell sum and estimated sum, the final price will be subject to the system.

6)     The application for Hedging contract currently cannot exceed the number of 10.

7)     If users have extra assets, BitcoinWorld will preferentially use them to buy or sell. For example, a user has an extra asset of 0.6BTC, and at the moment the user applies for Hedging to sell 1 BTC. After BitcoinWorld sells 1btc, it will deduct the 0.6BTC in user’s account, thus finally the user spends 0.6BTC and borrow 0.4BTC from the platform.

3. Hedging liquidation: user can pay off and end the contract by liquidation.

1) Each single contract can be returned by repeated liquidations. A contract can only fit a current liquidated application. Only when user finishes the liquidation can he opens another one.

2)     The number of bitcoin cannot be less than 0.1BTC when user applies for liquidation

3)     If user still has extra BTC or fiat after liquidation, he should preferentially pay back the same kind of business, currency and the earliest contract unfinished.

4)     If user still has extra asset in account, BitcoinWorld will preferentially use it to buy or sell BTC.

5)     During the process of Hedging, the interest will be counted when the system finishes bitcoin buying or selling. 24 hours to a day and less than 24 hours also to a day. The platform stipulates that daily fee rate is 0.1%. It will deduct all the interests once when user pay off debt of Hedging.

Accumulative interests= user’s sum of repayment * handling charge0.1%* days

Notice: the platform only accept BTC when user pays for interests.

4. Supervision and risk control: BitcoinWorld provides users who apply for Hedging with risk management service and has a supervision and risk management for user’s account on BitcoinWorld.

1).  Hedging: the validity of each contract is 30 days. The system will carries out the mandatory liquidation if user cannot pay off all the debt within 30 days.

2).  BitcoinWorld will remind user the space risk by mail or message when the total asset is less than or equal to 120 % (total debt in user’s account + accumulative interests). BitcoinWorld will not bear any responsibilities if user cannot receive the notice in the case of phone signal, message interception and junk mail processing.

3).  BitcoinWorld will implement the mandatory liquidation to return the debt when the total asset is less than or equal to 110 % * (total debt in user’s account + accumulative interests). We have right to charge loss if user doesn’t have enough asset in account due to the severe volatility of price.

4).  After the mandatory liquidation, if user is unable to pay off the debt with its account asset and appears to be abnormal, user can recover it through recharge as well as Hedging

5. Relevant agreements:

1).  Once when user uses Hedging operation, which means user has read and agreed the Hedging agreement.

2).  BitcoinWorld will not bear any responsibilities for user’s direct or indirect loss caused by user’s operatio of Hedging .

3).  This agreement, made by BitcoinWorld, will go into effect after being announced to all platforms, which also applies to when there is a modification.

4).   BitcoinWorld reserves all the right for the final explanation about this agreement.

6. Risk notice

1). The maximum bitcoin amount that user can borrow is based on the fluctuation of current market price. The final maximum bitcoin amount borrowing is determined by the application limit of user’s current account indicated by system.

2). Interest will be counted by BitcoinWorld when the system finishes the bitcoin buying or selling (only accept BTC). The system will count the fees before user pays off the debt. The interests will be deducted in a lump sum when user pays off.

3).  BitcoinWorld will remind user the space risk by mail or message when the total asset is less than or equal to 120 % * (total debt in user’s account + accumulative interests). BitcoinWorld will not bear any responsibilities if user cannot receive the notice in the case of phone signal, message interception and junk mail processing.

4).  BitcoinWorld will implement the mandatory liquidation to return the debt when the total asset is less than or equal to 110 % * (total debt in user’s account + accumulative interests). We have right to charge loss if user doesn’t have enough asset in account due to the severe volatility of price.

5).  User should pay attention to investment risk and adjust space holding proportion in order to avoid risk. User should bear all losses caused by the mandatory liquidation triggered by user’s account.



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